By Louisa Ward
It has been a frenzied sellers’ market for the last 12 months, but the tide is starting to change. The local economists are not predicting a crash but rather a movement toward a balanced market.
Since March 2021 every week there has been a slight drop in demand and a slight increase in supply. Economics 101: when demand decreases, supply increases. These slight changes are barely noticeable. Homes are still selling quickly and often in multiple offer situations. However, the price range of $500,000 and above is showing more evidence of this shift. Homes in this price range are selling in a week or two, rather than a few days, causing For Sale signs to stay up a little bit longer. A large portion of the North 32nd Corridor falls into this price category. Yes, we are seeing more For Sale signs accumulating.
See the chart to view the “Active Listing Weekly Counts.” Week 26, which started on July 3, hit a yearly high of active listings in our zip codes: 85028 and 85032. On average, the trajectory is slightly ticking upward since March.
If the market continues on its current trajectory, the $500,000+ price range will be in a balanced market within six months. A balanced market is not a bad thing. Homes will still sell at the current price range and will continue to appreciate annually, but at a rate of the cost of living in lieu of the high appreciation percentages that we have been experiencing. A balanced market will also increase the time a home sits on the market for sale, so there will likely be an increase in price reductions, and sellers will be providing more buyer assistance to close the deal (i.e. contributing to buyers’ closing costs and/or making repairs). Buyers will have some leverage unlike now where they have no leverage against the seller.
With interest rates at historic lows, continued increase in the job market, and millennials converting from renting to owning – economists do not expect that we will move into a buyers’ market.
If you are thinking about selling:
- Do it now while sellers are in control.
- Get expert advice on pricing the home and price it correctly.
- Hire an experienced Realtor and neighborhood expert with a customized marketing plan.
I have lived and sold real estate in the North 32nd Corridor for over 25 years. My neighborhood experience extends beyond real estate as I am the Mountain Preserve Block Watch Leader and Member of the Paradise Valley Village Planning Committee for our community.
Call me for expert pricing, a specific marketing plan for the North 32nd Corridor, and a stellar client experience. You can reach me at 602-769-6699 or MyAzRealtyTeam.com.
Louisa Ward is a senior partner at My Az Realty Team and RE/MAX Excalibur. She is part of the Top 2 percent of Realtors in Phoenix and Scottsdale with 25 years of experience. Louisa is also an active member of the North 32nd community, serving as a local real estate expert, member of the PV Village Planning Committee, and a Mountain Preserve Block Watch leader. To learn more, visit MyAZRealtyTeam.com, call 602-769-6699, or e-mail MyAzRealtyTeam@gmail.com.